Detroit Goes Bankrupt

The city of Detroit will file for bankruptcy, the largest American city to ever do so. If this filing is approved, the city will liquidate what it needs to in order to pay off its debts, meaning that public employees (and their unions) will face a serious crunch.

Perhaps with this bankruptcy, the city of Detroit will finally be able to heal and recover. All the idealistic welfare state nonsense which put them in this situation over the decades will yield to the reality of their situation. It’s not so much about what Detroit wants, but what it needs. That should help the city get on good footing moving forward, serving as a warning and hopefully a positive example (moving forward) of responsible government.

UPDATE: A Michigan judge just decided that since Obama bailed out the GM and Chrysler, Detroit declaring bankruptcy somehow dishonors Obama (huh?) and therefore should be reconsidered, and that such a bankruptcy probably violates the state constitution or something. Basically, the pension attorneys got outmaneuvered, so this judge (with Democrat ties) is giving them some time to catch up — the unions need their goodies, Detroit be damned!